McIntosh PFS Reveals Compelling Economics with 25% IRR and 32-Year Mine Life
Green Critical Minerals (GCM) has announced highly positive results from its Pre-Feasibility Study (PFS) for the Green Critical Minerals McIntosh project in Western Australia, demonstrating strong economic returns and technical viability that position the company as a potential long-term supplier of high-quality graphite products.
The PFS confirms McIntosh as an economically attractive project with a post-tax NPV8% of A$235 million and an IRR of 25.3%. With a remarkable 32.5-year mine life and significant resource expansion potential, McIntosh emerges as one of Australia's most advanced graphite projects.
Key Financial Highlights
- Pre-tax NPV8%: A$340 million
- Post-tax NPV8%: A$235 million
- Pre-tax IRR: 29.6%
- Post-tax IRR: 25.3%
- Payback period: 5.7 years from production start
- Life of mine: 32.5 years with expansion potential
- Initial capital cost: A$54 million
Robust Production Fundamentals
The project will process approximately 380,000 tonnes of raw material annually to produce 13,500 tonnes of graphite concentrate annually, comprising:
- 6,075 tonnes of graphite concentrate
- 7,425 tonnes of micronized graphite concentrate
Both products will achieve a high purity of 95% total graphitic carbon (TGC), positioning them for premium markets.
The project's economics are underpinned by a newly established Ore Reserve of 11.1 million tonnes grading 3.88% TGC, containing 432,101 tonnes of graphite. This reserve is classified entirely as Probable.
Australia's Fourth Largest Graphite Resource Just Got Bigger
The PFS included an updated Mineral Resource Estimate, which has increased to 32.6 million tonnes grading 4.25% TGC, representing an 8% upgrade. This confirms McIntosh as Australia's fourth-largest graphite resource.
A key advancement in the resource model was the reduction of the cut-off grade from 3% to 2% TGC, supported by extensive metallurgical variability test work that demonstrated economic recovery of lower-grade material. This change has positively impacted the project's economics and extended its mine life.
Understanding Graphite Cut-Off Grades
The reduction in cut-off grade from 3% to 2% TGC is significant for the project economics. Cut-off grade refers to the minimum concentration of graphite that can be economically processed. The ability to economically process lower-grade material means more of the resource can be converted to reserves, extending mine life and improving overall project returns.
Metallurgical test work demonstrated that even material with lower graphite content (2-3% TGC) can be effectively concentrated to the target 95% TGC product using the proposed processing route, validating this approach.
Targeted Market Strategy
GCM has identified specific market segments for its products, focusing initially on:
- Lubricants
- Friction components
- Agriculture applications
- Coatings
The project offers expansion potential for spherical purified graphite (SPG) anode materials, with test work ongoing. This strategic focus allows GCM to enter established markets while developing capabilities for the growing battery materials sector.
Strong Project Development Fundamentals
With over A$15 million already invested in drilling and metallurgical test work, McIntosh stands as one of Australia's most advanced graphite projects. The extensive development work completed to date supports rapid advancement toward production.
Clinton Booth, Managing Director of Green Critical Minerals, highlighted the strategic importance of the project: "Graphite is recognized globally as a critical mineral, and recent U.S. policy announcements—particularly actions to reduce dependence on Chinese graphite imports—have sharpened the focus on secure, transparent supply chains."
Similar environmental considerations can be seen in other projects like EcoGraf's Epanko graphite project, which recently completed its environmental and social planning, highlighting the industry-wide focus on responsible development.
Future Development Timeline
The company has outlined a clear path forward, including:
- Completion of a Definitive Feasibility Study by November 2026
- Finalization of environmental and mining approvals by November 2026
- Expected financial close in December 2026
- Construction start in June 2027
- First production targeted for early 2028
This timeline is comparable to other critical minerals projects, such as Vital Metals' Tardiff rare earths project, which recently secured funding to advance its development.
Why Investors Should Watch Green Critical Minerals
The Green Critical Minerals McIntosh project represents a compelling investment opportunity for several key reasons:
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Strong economics: 25.3% post-tax IRR and A$235M NPV demonstrate robust project fundamentals
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Long mine life: 32.5-year operation provides exceptional longevity with significant expansion potential
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Critical minerals exposure: Positioned in the growing critical minerals sector with applications across traditional and emerging markets
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Advanced development stage: With A$15 million already invested in development, the project is well-positioned for rapid advancement
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Vertical integration potential: The company's dual strategy includes becoming a vertically integrated supplier of traditional and advanced graphite products
As global markets seek secure, ESG-compliant sources of graphite outside China, GCM is strategically positioned to capitalize on shifting supply chain dynamics with a technically robust and economically attractive project.
The increasing focus on critical minerals can also be seen across various resource sectors, with companies like Austin Metals beginning drilling near top producers and Vulcan Energy acquiring renewable lithium assets to meet growing demand.
Furthermore, the development of the Green Critical Minerals McIntosh project aligns with broader industry innovations, including GreenHy2's breakthrough in graphene supercapacitors expected by 2025, demonstrating the expanding applications for high-quality graphite products.
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